Fake Chinese Bank in Nanjing Scams Depositors of 200 Million

Fake bank in Nanjing scammed depositors of 200 million RMB, was decorated to look like a state-owned bank.

Fake bank in Nanjing scammed depositors of 200 million RMB, was decorated to look like a state-owned bank.

From NetEase:

Fake Bank in Nanjing Decorated As State-Owned Bank, Illegally Collected 200 Million Yuan [RMB] in Deposits

According to a Xinhua report, a “cooperative” that had absolutely no financial qualifications meticulously decorated their interior to resemble that of a state-owned bank and used high interest rates to entice city residents to come deposit their money, scamming nearly 200 people in just over a year, involving nearly 200 million yuan [RMB].

2014 May, Wang X, from Zhejiang province Hangzhou city, was introduced by a “middle-man/intermediary” to the “Nanjing X Rural Economic Special Cooperative” located on Jiangpu Street in Pukou district of Nanjing, where he deposited 12 million yuan in his company’s liquid funds. This “cooperative” promised to give Wang X the same interest for the same period a bank would give but also an additional 2% interest every week.

However, after receiving 4 consecutive weeks of additional interest, this “cooperative” stopped giving Wang X additional interest. Wang X hurried from Zhejiang to Nanjing over this only for the other party to not only give him the additional interest but to discover that he could not withdraw his 12 million yuan either. 2014 June, Wang X reported the matter to the Nanjing Pukou district police.

After the Nanjing Pukou police launched an investigation, they discovered that the business license for this “Rural Economic Special Cooperative” limited its operations to rural/agricultural information and consulting which has no relation whatsoever to financial services and products, and thus prosecuted this “cooperative” on suspicion of illegally collecting public deposits.

Pukou police explain that this “cooperative” began offering high rates of additional interest in addition to the interest rates given by banks in 2014.

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Pukou police also explained that when this “special cooperative” engaged in interior decorations, it had completely imitated the look of a state-owned bank, not only designing counters like that of a bank but also with LED display screens, a customer queuing system, etc. to the extent where the five counters had “workers” dressed in uniforms resembling that of a bank. After some depositors were lured in and saw this, they thought it was a regular credit association/union.

At present, Liu X, the legal representative of this “cooperative” suspected of illegally collecting public deposits, and three other “business managers” have already been detained as criminals. One female high senior manager who fled with with the illegally acquired funds also having been convinced by Nanjing police to return and surrender herself on 2014 December 31, while another two assistants hired by Liu X remain at large.

Comments from NetEase:

见朕骑妓的时刻到了 [网易广东省广州市网友]:

Actually, they are all their own people! To placate the masses, they can only fabricate this story!

465489731 [脑洞大开]:

Fuck, set up a booth on the street and you’re immediately stopped, but such a huge scam they don’t see.

福尔摩伍 [网易广西贵港市手机网友]: (responding to above)

Crack down a bit everywhere, or do you think the wolves are blind?

别说我是新人 [网易黑龙江省大庆市网友]:

Don’t the real banks also swallow people’s money?

别人家的 [网易广东省广州市手机网友]: (responding to above)

The real banks paid their protection money.

[Note: This is suggesting that banks have paid the media to not have negative reports about them.]

网易浙江省温州市网友 ip:115.218.*.*

Lies, continue lying. Could a fake bank open accounts? Can a fake bank issue bank cards? Can a fake bank’s business enter the banking system?

andrewlbc [网易广东省广州市网友]:

This is simply: regulatory loophole + human greed + banking’s huge profits + scammers’ skill = this result.

实心眼250 [网易吉林省四平市网友]:

That scammers can use the same tricks in new disguises, why is it that they can be so audacious?

虾鸡吧烤 [脑洞全开]:

So in support, there is hope now. [This is sarcasm.]

网易河北省秦皇岛市网友 ip:123.181.*.*

To get rich, there are all sorts of ways!

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Written by Fauna

Fauna is a mysterious young Shanghainese girl who lives in the only place a Shanghainese person would ever want to live: Shanghai. In mid-2008, she started chinaSMACK to combine her hobby of browsing Chinese internet forums with her goal of improving her English. Through her tireless translation of popular Chinese internet news and phenomenon, her English has apparently gotten dramatically better. At least, reading and writing-wise. Unfortunately, she's still not confident enough to have written this bio, about herself, by herself.

  • biggj

    Wow. That is awesome. I have to give these guys credit….they did a good job….like level 9000 scamming. I tip my hat to these guys.

    • Alex Dương

      Do you consider Madoff over 9000?

      • ClausRasmussen

        Madoff was running a Ponzi scheme, a big one, but still no more complicated that what any half-witted conman could dream up. This scam on the other hand, the World have never seen anything like it

        • Alex Dương

          You’re talking about how the scammers went so far as to create a physical-but-fake bank?

          • ClausRasmussen

            Exactly. Can you think of any time that have happened before ? Or can you even imagine it happen anywhere but in China ? I think Hollywood came close in one of the Ocean’s movies lol

            Gotta love it (in some bizarre way)

          • Alex Dương

            I’m not aware of any off the top of my head; I’d have to do a search xD

          • Bagga Txips

            Actually, at Harrods, a very high-priced shop in London that has a a crazy sale wherein maddened snobs fight each other to buy very expensive household items at prices that are merely too high rather than their usual breathtaking levels, there was a day where a few crooks entered with the over-excited “bargain hunters”, set up a cashpoint of their own, took money for sales, issued receipts etc, then at the end of the day left with 25,000 pounds, or maybe it was 250,000. And the whole of the UK laughed.

        • David

          I think you are over simplifying what Madoff did. He had a company (investment company) who also issued certificates of stock ownership and ran for decades. He paid some customers, t lure in other customers. He took billons from some of the smartest money people in the world, who should have known better. He even fooled the Securities and Exchange Commission, whose job it was to investigate financial firms like his for fraud.

          These guys just set up a building in a place (China) where you only have to pay the local cops (or mafia or whoever) to be avoided. This could only happen in a country where most of the people are incredibly uneducated about money. Now, that being said, I agree they got huge brass balls but I don’t admire them, they are criminals….

        • gregblandino

          Yea I’m going to have to side with David on this one too. While the visuals of this seems more ballsy at first glance (fake bank!), Madoff set up a facade way more complex than this. He had his own offices in downtown Manhattan, got heavily involved in philanthropy, was a chairman at NASDAQ, dabbled a bit in politics, scammed his own community (what type of scum fucks with the Elie Wiesel fund), and probably the ballsiest thing IMHO, was to steal money from people with actual pull who “matter.”

          He makes these guys look like small time chumps. And while giving the devil his due, both cases are amoral assholes who deserve more prison time than they’ll probably get.

          • simon

            this scam is so simplistic it leaves madoff’s complex twisted scheme in the dust. i mean come on, all they did was decorate a store front like a bank and they were able to scam 200M RMB, now imagine if they duplicated this in other places.

          • Mighty曹

            Agreed but it should be noted that Madoff’s scheme was built upon his legitimate reputation in the financial world before he turned rouge to greed whereas the fake bank was, literally, built from the ground up to scam.

          • David

            good point, I will say they were ballsy.

      • biggj

        Yeah madoff was cool but this is way cooler. To actaully make a fake bank…the balls on these people lol

        • Amused

          Madoff actually managed to fool government oversight bodies…

          • biggj

            For some reason what he did was not that interesting. It was but….me or you could not do that. You and I could do what they did in this story. We could rent a office space set it up as a bank and do this…it’s not that far fetched. To do what madoff did you have to connected in so many ways the average guy could not really do it.

      • Raymond

        One thing’s for sure, they both Madoff with a lot of money.

        • NeverMind

          Unfortunately for the people cheated, the interest rate was not a ‘good bank for the buck’ in the end.

        • biggj


          • guest

            Oh all good pun!

  • ClausRasmussen

    >> 2% interest every week

    If it sounds like it is too good to be true, it usually is

    • bujiebuke

      Yep, that popped out for me also. I wonder if they also went as far as to create a shell of a website to go along with their physical location.

  • Irvin

    Any people say chinese got no creativity, we just need the right motivation.

    • David

      The right motivation being crime? You sound like you are proud of these people instead of ashamed of them.

      • Irvin


        • David

          Why would you be proud of criminals hurting your countrymen? With as much money as they stole there are no doubt many people who lost their life savings. Would you be so happy if your grandparents were tricked into losing their the money they spent their entire lives saving?

          • Yes!

            Rarely can you find a mainland Chinese who understand the concept of “Do not do unto others what you would not others do unto you”. It’s just not them to care about society’s good. (Yet, strangely enough, they’re quick to display/defend national pride even if there’s nothing to be proud of).

          • Alex Dương

            Lots of people, sadly, don’t respect the golden / silver rules. Ron Paul was booed for arguing that the golden rule should guide U.S. foreign policy. It seems to be a trait of assholes that they expect others to treat them well but they don’t feel the need to treat others well.

          • Irvin

            Happy? no, sad? no either. Just amused and entertained. I think you take things way too personal, have some apathy in your life, it’ll keep the blood pressure down.

          • David

            Well my BP is 120/70 so I am good (actually pretty good for 52 year old). I only comment because I want to be sure I understand how things are really meant.

      • vincent_t

        Come on dude! Relax, why so serious?

        • David

          No problem, it is often hard to detect sarcasm in printed form.

  • Markus P

    Quote “scamming nearly 200 people in just over a year”
    How the heck did a fake bank stay open and unnoticed for over a year? Does no one inspect banks? Only found out because someone who lost money reported it!

    • Dolph Grunt

      Yeah, that kinda hit me too. A year? Don’t banks get inspected? At least to make sure they’re really… y’know… a bank?

      • Some guy

        you would hope they will be now !

  • Ryo Saeba

    Those guys are laughing all the way to the bank! Anyone? No? Ok…..

  • Luke the Duke

    You wonder how they were able to operate for an entire year before a customer complained.

    Or was that businessman merely the first influential customer to complain?

  • Didn’t these guys also run an Apple Store before too? ;-)

  • Amused

    Yawn. Apparently “Communism with Chinese Characteristics” means no government, no law and no police. Which should be no surprise.

  • 42

    There is but only one comfort in all of this is that there is a death penalty in China for such crimes

    • mr.wiener

      I don’t think they’ll be facing the death penalty somehow.
      I do wish Dante had been correct about what is waiting for cheats like these guys and Madoff.

  • AbC

    Scammed nearly 200 people for over 200million rmb in a year…
    Surely they are targeting only specific clientele if each customer averages over 1million rmb in investment money. Most people in first world countries don’t even have that much to invest.

  • Probotector

    “Fuck, set up a booth on the street and you’re immediately stopped, but such a huge scam they don’t see.”

    Yeah I’m wondering the same thing, I mean, don’t banks need authorisation from some kind of financial services authority, or the closest Chinese equivalent? Also, aren’t all banks ultimately owned and controlled by the state?

    • biggj

      I think there are more people indirectly involved…has to be. Like you would need to pay off cops, officials ect to run that long. You would have to pay off a lot of people in the city to make that run. They made like 200,000,000 rmb…that would be enough for everyone involved to have a nice piece.

    • Irvin

      You know what they say, go big or go home.

  • Perseus Wong

    I bet the vendors who furnished the signage and interior furniture for the fake bank were also scammed too. “Don’t worry. Just give us the furniture in advance we’ll pay you back when we are in business!” said the 骗人家

  • Mighty曹

    I thought they would never top the fake Apple store. Damn, I was wrong.

    • Alex Dương

      What “fake” would you consider to be even better than this?

      • Mighty曹

        That’s what I’m saying. This tops the fake Apple store.

        • Alex Dương

          Sorry, I meant what would top a fake bank in your opinion?

          • Mighty曹

            God forbid. A fake hospital.

          • Alex Dương

            I was thinking that too. A 17-year-old recently faked being a doctor for one month, but man, if someone actually managed to fake an ENTIRE HOSPITAL for a year, I dunno what they’d have to do.

          • Mighty曹

            They take money upfront and let patients die with a treatment.

          • Dolph Grunt

            Isn’t that the current system, more or less?

          • Mighty曹

            Hahaha… yeah.

          • biggj


  • Dolph Grunt

    Good grief! I’ve seen a lot of fake in China, but really? Fake bank?

    What next?

    Fake airline?
    Fake police station?
    Fake Disneyland?

  • David

    I am not familiar with this scandal but from how you describe it yes. I think the biggest difference between Madoff (and really most western con artists) and crime in China is how it is accomplished. I mean obviously both are stealing other peoples money. I am not an expert on Chinese crime but it seems to me most like this are accomplished by bribing local officials/police to look the other way. The actual activity is quite open but it is protected. Only being stopped when somebody who is not corrupt finds out about it. Where as in the west this kind of crime must be hidden from authorities because most (certainly not all) people would report this and it would be investigated and shut down by the government very quickly. so the skill comes in fooling officials in charge of oversight.